Market-rigging mechanisms are longstanding. On March 18, 1989, Ronald Reagan's Executive Order 12631 created the Working Group on Financial Markets (WGFM). It's called the Plunge Protection Team (PPT).

Its officials or designees include:

the President;

the Treasury Secretary as chairman;

the Fed chairman;

the SEC chairman; and

the Commodity Futures Trading Commission chairman.

Its "Purposes and Functions….Recognize the goals of enhancing the integrity, efficiency, orderliness, and competitiveness of our Nation's financial markets…."

They focus on "maintaining investor confidence…."

"(T)he Working Group shall identify and consider:

(1) the major issues raised by the numerous studies on the events (pertaining to the) October 19, 1987 (market crash and consider) recommendations that have the potential to achieve the goals noted above; and

(2)....governmental (and other) actions under existing laws and regulations....that are appropriate to carry out these recommendations."

Government and Wall Street collude. They manipulate markets doing so. They move them up and down. Enormous profits are made both ways. Most people don't know what goes on.

Dumping hundreds gold tons on the market affects it greatly. It "drives down the price." Unwary holders lose out big. If things go as planned, naked short sellers benefit enormously. The dirty game works that way.

China, Russia and other central banks are loading up on gold. They'll likely jump in at bargain prices. Doing so would pressure "the dollar's exchange value."

Manipulative attempts to protect it may end up "hastening (its) demise." The fullness of time alone will tell.

It hasn't happened so far. On April 15, gold plunged more than $140 an ounce. Its 9.3% decline was the biggest one-day drop since February 1983. It settled at $1,361.10 an ounce.

What's a holder to do?

Investor Marc Faber[2] "love(s) the fact that gold is finally breaking down because that will offer an excellent buying opportunity."

"The bull market in gold is not completed."

He expects a "major low in gold within the next couple of weeks."

"(Y)ou should actually buy (it) as a trade."

Before Friday's decline, it was way overbought. Faber now thinks we're "as oversold" as during the 1987 stock market crash. It proved a major buying opportunity.

For now, Faber recommends treading carefully. "From a longer term perspective, (he'd) give it some time." He maintains his longterm bullish outlook. He's not alone. He's not selling.

Market analyst Graham Summers[3] blames the selloff largely "on institutional liquidation in Asia where Japanese bonds are being sold."

Doing so followed the Bank of Japan's massive QE announcement. It's doubling down on previous policy. It's high-risk. What failed for over 20 years is being repeated.

"With this in mind," said Graham, "the move in gold looks to be several large institutions liquidating positions to meet margin calls or redemptions due to the plunge in Japanese bonds."

China's slowdown is another factor, he says. Its growth stimulated post-2009 recovery. Heading south now bodes ill. Graham expects an eventual financial market "bloodbath." It could come anytime, he believes. Commodities could crash with it.

Gold's technical damage is "severe." Prices may decline further. They've had a great run. Nothing goes up forever. Stay tuned for what follows. No one knows for sure.

Stephen Lendman lives in Chicago. He can be reached at lendmanstephen@sbcglobal.net.

His new book is titled "Banker Occupation: Waging Financial War on Humanity."

http://www.claritypress.com/LendmanII.html

Visit his blog site at sjlendman.blogspot.com.

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